AppsVillage (ASX:APV) - CEO, Max Bluvband
CEO, Max Bluvband
Source: The Market Herald
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  • App building specialist AppsVillage (APV) has frozen its shares for the weekend today as it crosses the T’s and dots the I’s on an upcoming capital raise
  • The details of the capital raise will be revealed on Monday, July 27
  • The company’s June quarter financials are yet to be released, but over the March quarter, AppsVillage burned roughly $1.44 million
  • With around $2.5 million in the bank at the end of March, today’s capital raise may not be surprising to investors — particularly given the company’s bold near-term goals
  • AppsVillage currently offers app-building, advertising, and micro-financing services to small and medium businesses
  • By the end of 2022, however, the company plans to be a strategic technology for tech giants like Facebook and Google
  • Shares in AppsVillage last closed yesterday afternoon for 14 cents each

App building specialist AppsVillage (APV) has frozen its shares for the weekend today as it crosses the T’s and dots the I’s on an upcoming capital raise.

Details of the raise are slated to be revealed on Monday, July 27, but the company told shareholders it will take place as a share placement and share purchase plan.

Gleneagle Securities has been appointed as Lead Manager to the capital raise.

The company has had a busy quarter building itself up as an all-in-one small-to-medium business (SMB) hub. What started as a mobile app designing platform for businesses has evolved into advertising and micro-financing services as well.

AppVillage’s services now help SMBs advertise on Facebook and take out loans of between US$5000 and US$50,000 (roughly A$7000 and A$70,000), all through the AppsVillage platform.

The company is planning to up its analytics capabilities by integrating its tech into Facebook Channel and Google Channel over 2021, and in 2022 has its eyes set on becoming a strategic technology for the tech giants themselves.

Of course, the company needs to be able to put its money where its mouth is to meet such bold goals.

AppsVillage is yet to release its quarterly figures for the final quarter of the 2020 financial year, but taking a look at its cash position at the end of March, the upcoming capital raise may come as no surprise to investors.

While making roughly $423,000 in customer receipts over the March quarter, AppsVillage still burned just under $1.44 million over the quarter.

With around $2.5 million cash in the bank, this means at similar spending levels the company would need to top up its balance sheet in order to keep operating past the June quarter.

Exactly how much the company plans to raise through the upcoming placement and purchase plan will be revealed on Monday.

Shares in AppsVillage last traded for 14 cents each yesterday afternoon.

APV by the numbers
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